House Passes GOP Bill to Make New Tax Cuts Permanent
By MARCY GORDON , AP Business Writer
WASHINGTON (AP) — Republicans have sped legislation through the House to expand their massive new tax law, capping their session for the year as they rush out of town to face voters in the November elections. The new bill would make permanent the individual and small-business tax cuts in the law.
Friday's vote was 220-191 in the Republican-led House to approve the legislation. It's the second tax-cut proposal that Republican leaders have pushed in less than a year. The vote was mostly along party lines. Democrats continued their solid opposition to tax-cut legislation, asserting it favors corporations and wealthy individuals over middle-income Americans.
At the same time, several Republican House members, facing tough re-election fights in the high-tax, Democratic-leaning states of New York and New Jersey, voted against their party's bill.
The GOP lawmakers are pushing to hold onto their seats in relatively affluent suburban districts where President Donald Trump is unpopular. Residents in those states could see substantial increases in their federal tax bills next spring because of the $10,000 cap on state and local deductions in the tax law. The new legislation would make the cap permanent.
Prospects for the legislation in the Senate are weak, given the slim Republican majority and concern over the potential for further blowing up the deficit with new tax cuts — without corresponding new revenue sources. The sweeping rewrite of the tax code that Republicans hustled through Congress late last year, signed into law by Trump as his signature legislative achievement, is expected to add about $1.5 trillion to the deficit over 10 years.